More consumers using Mobile Remote Deposit Capture

Nothing embodies the marriage between old and new in banking quite like mobile remote deposit capture (RDC), and new data shows it’s becoming a more popular way for consumers to deposit checks.

A survey by the American Bankers Association (ABA), conducted by Ipsos Public Affairs, an independent market research firm, July 8-13, 2015, shows one in seven US consumers has deposited a check using a mobile device within the last year - up from one in eight when the same poll was carried out a year ago.

The report also shows that for a lot of Americans, RDC is much more than a novelty. Of those who use the technology to deposit checks, more than half (54 percent) report using it at least once per month.

“Mobile deposit continues to attract more consumers because this bank service is incredibly convenient,” said Nessa Feddis, ABA’s senior vice president and deputy chief counsel for consumer protection and payments, in an ABA press release on August 25, 2015, “In the short time it takes to post an Instagram, you’ve deposited your check.”

Yet, the survey also reflects the broader decline in check usage as people turn to other channels to make payments. In the 2014 survey, 80 per cent of people who had used RDC in the previous year utilized the feature at least once a month.

“People are receiving checks less frequently, but when they do they’re increasingly turning to mobile banking to deposit them,” said Feddis. “Mobile has become a bigger part of how people interact with their bank, and we expect banks to continue to expand and enhance customer services available through mobile devices.”

Meanwhile, research from Celent indicates how RDC is impacting the branch channel, with the technology reducing footfall as consumers find it easier to deposit checks from afar. It expects the mobile scanning to account for half of all bank deposits by 2016. Mobile image scanning technology also has a bright future in other use scenarios such as initiating loan applications, or even account opening.

Checks are just one part of the remote capture picture, but the spread of the technology in this space highlights how consumers are ready to use their smartphone cameras for a broader range of tasks.

Andrew has 20+ yrs experience in the software industry covering banking, healthcare and the telecommunications verticals. With past positions in finance, accounting, sales, and prod. mngt, he brings significant mobile and payment expertise to his current role.